“Outsourcing will be a major issue [in the coming Presidential elections in the U.S.A.]. Just wait and see!”says Arvind Panagariya, Professor of Economics, Columbia University. An author of many, his latest book India: The Emerging Giant will be released in Dec. 07.
He discusses issues that are impacting globalization with Rinku Tyagi.
Sentiment inside the Beltway has turned sharply against China. There are many issues where the two parties sound more or less the same. Trump and others in the administration seem heavily invested in a ‘get very tough with China’ stance. It’s possible that some Democrats might argue that a decoupling strategy borders on lunacy. But if Trump believes this will play well with his core constituencies as his reelection campaign moves into high gear, he will probably decide to stick with it, if the costs and the collateral damage seem manageable. But that’s a very big if, especially if the downsides of a protracted trade war for both American consumers and for American firms become increasingly apparent.
[On U.S.-Chinese climate cooperation under the Obama administration] When I say we had very good cooperation that didn’t mean we didn’t fight and argue and have very different views…we knew we were committed to trying to work together in a way that wasn’t going to cross red lines. Eventually – although it could take a long time – we will find a way.